19.2.5.2 Rights Exercise

If you associate security of rights type, with an exercise type of product in the deal input screen the exercise event is carried out for the security involving the product. You have to indicate the number of rights to be exercised along with the SK location and the SK account where the rights are lodged. You can view details of the quantity of the resultant security, along with other details such as the exercise price. In case there are charges, the charge details will also be displayed. Depending on the number of rights exercised, the holdings in the rights security will go down and the holdings in the resultant security will go up. For the event Rights Exercise Collection for a long position (RELC), only those events with the collection date less than or equal to today and for which collection has not already been made will be selected for processing.

Once the collection is complete the Rights Exercise Initiation for a long position (RELT), is triggered. The Rights Exercise event processes those events that have not yet been initiated, despite having the initiation date of today or less than today. After the rights initiation event is through the Rights Exercise Disbursement for long periods (RELL) event is triggered. In the case of auto liquidation, the system liquidates only those events which are yet to be disbursed with the disbursement date being less than or equal to today. Positions are updated once the disbursement event is complete.